Spotify Won't Let Go of Joe Rogan, Podcast King Secures Another Multiyear Deal

Spotify (SPOT) renewed its deal with Joe Rogan, adding a $250M earnout, and expanded its buyback program by $1.5B. Q2 saw 9% subscriber growth and 33.4% gross margin. A valuation model targets $780, implying 47% upside. Q3 results on October 22 will be key for investor sentiment.

Netflix (NFLX) shares fell 3% to $70.35 after naming Peter Rice as chief content officer, replacing Bela Bajaria. The move follows Netflix's largest layoffs in four years. Disney (DIS) and Spotify (SPOT) shares remained steady. Netflix is down 25% year-to-date, while the Communication Services Select Sector SPDR ETF (XLC) rose 0.4%.

Michael Smith was sentenced to 18 months in prison for using bots to stream AI-generated songs on Amazon Music, Apple Music, Spotify, and YouTube Music, collecting over $8 million in royalties. The scheme involved thousands of bot accounts playing songs around the clock, diverting funds from real artists. Prosecutors highlighted the first criminal case of its kind, while the music industry emphasized the impact on legitimate artists' earnings.

Spotify (SPOT) announced plans to expand audiobooks to 180 markets by 2026 and renewed its deal with Joe Rogan. Shares rose 8.6% since September 30, with analysts offering mixed target prices. The company expects to report Q3 results on October 22, with revenue and gross margin guidance in focus.

Spotify plans to expand its audiobook service from 22 to 180 markets by 2026, offering 350,000 titles in 120 languages. The company reported over 1 million Audiobooks+ subscribers and $100 million in annual recurring revenue. New markets for Student plans include Ireland, Belgium, Austria, and Finland.

Piper Sandler initiated coverage of Spotify (SPOT) with a Neutral rating and a $540 price target, citing its strong market position but lack of near-term catalysts.